CIWR: BRAZIL

Created: 7/13/1962

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Current Intelligence Weekly Review

CENTRAL INTELLIGENCE AGENCY

approved for rill date:1

office of current intelligence

CURRENT INTELLIGENCE WEEKLY Kl-.VIEW

BRAZIL

President Goulart has won several victories over Congress In the Maneuverlugs of the past two weeksew prise sinister and cabinet,the constitutional amend-sent ofarliamentary systes with implied legislative. Confirmation of his latest nominee for the Prime Ministry, the little-known Francisco Brochado da Rocha, shows that for tbe moment at least Goulart has the upper hand.

Goulart's firsthe ambitious Leftist San Thlago Daatas, wa* rejected by the legislature. The fact that some of Goulart's supporters did not vote for Daatas maythat the rejection vas planned by Goulartay ofotentially dangerous rival.

Goulart's secondenate President Mourn Andrade, was confirmed in office by the Chamber of Deputies but resigned one day later because Goulart would not nominate the cabinet members Andrade had chosen. Goulart apparently believed heommitment from Andrade to push for the restorationtrong presidential system and had not expected Andrade'* effort to make himself anprime minister. labor under considerable Communist Influencehour strikes In major cities throughout Brazil In support of Goulart. The strikes werebut impressive by Brazil-lam standards and henceeffectlv*. Military lead-ers--who had been placed In their present posts byaupported the President.

Goulart's nomination of Rochauly reflects the President'* Increased confidence In his ovn political power. Rochalmost unknownla Brasll except a* aa ally of Leonel Brlzola, governor of Rio Grande do Sul, brother-in-law of Ootalart,rincipal candidate for leadership of the

leftist-nationalist forces In Brazil.

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Rochaonstitutional lawyer, ugust0 In Porto Alegre, capital of Rio Grande do Sul. lie entered politics0upporter of Getullo Vargas, who took over The governmentoup In that year and ruled Rochs'a father and brother have both been mayors of Portout Francisco longackground role. Bepecial -on-official" advlaer to Brizola when Brlzola was mayor68 and continued his advisory role after Brlzola's election as governoruring thla time heand in the rejection of US aid to the police In Porto Alegre.

Rocha belonged at first to the heterogeneous butconservative Social Democratic party (PSD) butbroke vlthew years ago to work in tbeLabor party. He hasbeen under consideration In Rio Grande do Sul for the Labor party'* aomlnatloo for the Senate. Apparently,Rocha never enrolledember of the Labor party, and because he waa largely unknown In Brasilia, Goulart was ablo to present him to congressember of the PSD, the largest party In congress. This may haveajor factor in his

yera In the southernmost part of Brazil Int that time, Brlzola had asked Rocha to Investigate charges that certain element* In the state government favored Communist actlvltlea. Thewa* apparentlyto Justify Brixola's regime.

Rochadviser la the expropriation of aof the Electric Bond and Share Corporation in9 andrande do Sul

secretary of Interior and Justice in early 2 when a

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CURRENT INTELLIGENCE WEEKLY REVIEW

of International Telephone and Telegraph Company was expropriated by the state government, mocha's few public statements suggest that he shares Brizola'm resentment both of foreign capital and of capital from Brazil's keystate of Sao Paulo. Roc ha'a skillonstitutional lawyer would be useful to Goulart both In moves against fornlgn-owned utility and miningwould enhance Goulart's popularand In maximizing Goulart's political power withoutthe constitutional boundaries which the Brazil-lan military guard Jealously.